|
| | |
| |
Theology and executive pay
A recent report from the Church Investors Group (CIG) has argued that Executive Pay is a moral as well as economic issue and has brought a theological angle to this long running debate.
“We have long expressed our objection to the natural injustice of many company pay policies by voting against significant numbers of them. Now we have firm theological foundations to support our stance on this issue of morality” said Bill Seddon, Chief Executive of the Central Finance Board of the Methodist Church.
His comments were made at the launch of the Church Investors Group report, The Ethics of Executive Remuneration: a Guide for Christian Investors.
CIG reported in the Press statement accompanying their launch, that the report was commissioned in response to the growing public concern at excessive pay awarded to many senior corporate executives.
John Cunningham, Financial secretary of the Roman Catholic Diocese of Plymouth and CIG Chair, stated; “This report will help bring theological insight into an area with which financial regulation alone is not equipped to deal. We hope that it will provide an accessible resource to help companies grapple with a problem threatening to alienate senior executives from the rest of society.”
The theological stance of CIG's report is intriguing and challenging. One of the core points it makes is in the area of poverty and social justice. Roger Short, trustee of the Baptist Missionary Society Pension Fund and CIG Steering Group member said “I am pleased that the report emphasised that concern for the poor should be the biggest concern for Church Investors. The call to narrow the growing differential between the highest and lowest paid employees is welcome.”
With the country entering an election campaign, issues of Executive pay and the Banking crisis will continue to ripple and so a theological stance around a key area of debate is timely.
Bill Seddon added “Engagement with companies on pay will be given renewed impetus by this clear exposition of the ethical challenges surrounding pay. We will certainly press for simpler and more transparent remuneration policies and discourage those that incentivise high-risk behaviour.”
The report is being posted on 16 March to the heads of the various Church denominations; the Chairs of FTSE 100 companies; the leaders of the main political parties and the Chair of the FSA.
Further information is available on the website (www.churchinvestorsgroup.org.uk)
|
Andy Freeman, 06/04/2010 |
|
|
|
